NEW YORK (TheStreet) --Shares of Carrols Restaurant Group, (TAST) - Get Report the largest Burger King franchisee in the world, were higher by 12.23% to $13.58 during mid-afternoon trading on Tuesday.
Shares are climbing as Burger King is set to unveil a new fast food item called the "Whopperito," which the fast food company is calling "the son of a Whopper and a Burrito," CNBC's Brian Sullivan reported on this afternoon's "Power Lunch."
Sullivan reported that the "Whopperito" will be offered for a limited time in Burger King stores across the country and priced at $2.99.
The "Power Lunch" team speculated that this move could be potentially aimed at rivals such as Chipotle (CMG) or the Jack in the Box (JACK) owned Qdoba.
Additionally, it was announced last month that Chipotle would be opening its first burger restaurant in Lancaster, Ohio this fall, pointing to the ever-increasing competition within the food sector.
Recently, TheStreet Ratings rates Carrols Restaurant Group as a "Hold" with a ratings score of "C." The primary factors that have impacted TheStreet Ratings rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
You can view the full analysis from the report here: TAST